incurrence test — USA A financial ratio test for covenant compliance that needs to be met at the time specific actions occur (rather than a maintenance test which needs to be met at regular intervals, such as quarterly or at all times). For example, the borrower… … Law dictionary

maintenance test — USA A financial ratio test for covenant compliance that needs to be met at regular intervals (such as quarterly or the end of each fiscal quarter). For example, the borrower may be required to maintain a leverage ratio of less than 3.0:1.0. The… … Law dictionary